Multiplayer games show continued revenue growth while user acquisition investments put pressure on the result
Comment from CEO in summary
“In line with our strategy multiplayer games are now growing steadily and represent about 70% of all revenues, up from less than 50% during the same period last year. Continued investments in performance marketing with good long-term returns, combined with improvements in our multiplayer games is the path back to profitability.”, says Daniel Hasselberg, CEO of MAG.
“The negative result this quarter is an effect of user acquisition investments as the return comes over a number of quarters. Compared to the same quarter last year, all core KPIs are weaker mainly due to the continuous decline we’ve experienced in WordBrain last financial year up until August. Starting a couple of quarters back WordBrain halted its decline, and this combined with the fact that Word Domination shows continued strong growth is promising for the future. Our ambition is to, as of this quarter, start showing revenue growth on a quarterly basis.” continues Daniel Hasselberg.
Summary of the period December 2018 until February 2019:
• The Group's Net sales for the period were 41,166 KSEK (58,938 KSEK), a decrease of 30% compared to the same period previous year. Net sales has increased 2% compared to the first quarter of the financial year
• The Group's game contribution for the period was 22,400 KSEK (28,459 KSEK), a decrease of 21% compared to the same period the. previous year
• Adjusted EBITDA for the period was -2,809 KSEK (1,608 KSEK)
• The costs for performance marketing in the period was 13,922 KSEK (19,721 KSEK)
• Daily and monthly active users (DAU and MAU) were 2.2 million and 7.8 million respectively during the quarter, a decrease of of 30% and 30% compared to the same period last year. ARPDAU was 2.3 US $ cents (2.6 US $ cents)
• EBITDA for the period was -2,809 KSEK (-12,407 KSEK)
• During the quarter updates were released to QuizDuel (BlitzQuiz) and Word Domination (Solo mode) that both had a warm reception from old and new players
|Further reporting dates|
|Interim report September-May 2018/2019||26 June 2019|
|Interim report September-August 2018/2019||23 October 2019|
Presentation & Report
On April 10th 2019 at 10:00 CET, CEO Daniel Hasselberg and CFO Magnus Wiklander will hold a Twitch video cast call in English to present the interim report. Link to the Twitch feed www.twitch.com/maginteractive. More information and the full report are available at https://www.maginteractive.com/investors/investor-relations/reports/.
This announcement contains inside information pursuant to Article 7 of the EU Market Abuse Regulation relating to MAG Interactive AB (publ). The information was submitted for publication through the agency of the contact persons set out below, on April 10th, 2019 at 08.00 CET.